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State Duties and Concessions – An Update

By Rae & Partners — May 14, 2020

The Tasmanian Government has recently passed legislation to change the Foreign Investor Duty Surcharge (FIDS). Changes were also made to extend the First Home Owner Grant scheme and existing stamp duty concessions.

Here is a snapshot of those changes and how they may affect your clients:

Foreign Investor Duty Surcharge

The Duties Act 2001 (Tas) has been amended to increase the surcharge rate applicable on direct or indirect residential or primary production property acquisitions by a 'foreign person'.

For agreements (or transactions) entered into on or after 1 April 2020, where FIDS is applicable, the surcharge rates on the proportion of the dutiable value will be:

  • 8% for residential property (up from 3%); and
  • 1.5% for primary production property (up from 0.5%).

Persons or entities purchasing property in Tasmania that may fall into the definition of 'foreign persons' ought to be aware of how FIDS may affect their purchase transaction.

Particular caution should also be taken where family trusts are used as purchasing vehicles – a review of the trust deed may reveal beneficiaries are captured in the definition of a 'foreign person'.

Pensioners Downsizing and First Home Buyer Duty Concessions

Time has been extended for these duty concessions until 30 June 2022.

In short, the Pensioner Downsizing concession may be applicable to eligible pensioners who sell a home in Tasmania and have 'downsized'.

Further, the First Home Buyer concession may be applicable to eligible persons who purchase an established home in Tasmania which has a dutiable value of $400,000 or less.

Where such purchasers are eligible for either of these concessions, they will be entitled to a 50% discount on stamp duty payabl

First Home Owner Grant (FHOG) Scheme

Time has been extended for the scheme until 30 June 2022.

First home buyers of new or off the plan homes that satisfy the required criteria can apply to the State Revenue Office to obtain the FHOG. Successful applicants receive the FHOG of $20,000

Need Help?

Our property law team is able to assist with any queries you may have in relation to FIDS, application of the duty concessions or the FHOG.